Banks are a good starting point when looking for personal loans. This is especially true if you are already a customer, as you can then access more favorable rates.
M&T Bank is a regional option, available in several states on the East Coast. While LightStream started as an online lender, it is now a division of Truist. They have relatively competitive rates for their personal loans, limited fees and a quick application process. But they serve very different consumer needs.
M&T Bank vs. LightStream at a glance
Although both M&T Bank and LightStream have similar lending terms, M&T Bank has more competitive rates. However, LightStream allows you to borrow more, and the loans are available nationwide.
| M&T Bank | LightStream | |
|---|---|---|
| Bank rate score | 4.6 | 4.7 |
| Better for | Competitive rates | Big loans |
| Loan amounts | $2,000 – $50,000 | $5,000 – $100,000 |
| APRs | 9.24%-15.69% | 7.49%-25.49% (with autopay) |
| Length of the loan | 12-84 months | 24-84 months |
| Costs | Late payment fees and insufficient funds fees | No |
| Minimum credit score | Not disclosed | 695 |
| Time for financing | As soon as the next working day | As soon as the same day |
Personal loans from M&T Bank
If you are already a customer, M&T Bank is a good option. You qualify for rate discounts based on the type of checking account you have, and the application process is streamlined.
If not, it may still be a good choice if you live in one of the service states. You don’t need an account with M&T to qualify, and the personal loans are much more robust than other banks. Although you must borrow at least $15,000 to get a term of more than 60 months, it is rare for a bank to give you the choice of a term of 72 or 84 months.
- Low maximum APR.
- APR discounts available.
- Fast financing.
Disadvantages
- Not available in every state.
- Discounts for current customers only.
- No joint applications.
LightStream personal loans
LightStream is the best option if you live outside M&T’s service areas or simply want to borrow a larger personal loan. It is a top lender and charges no fees, including late fees. Additionally, the rate discounts are available to anyone who signs up for automatic payments. The lender is also one of the few to offer to beat a competitive interest rate by 0.10 percentage points.
That said, LightStream’s main advantages are its speed and large loans. Although you must meet stricter eligibility requirements to qualify for a loan of more than $50,000, the opportunity to borrow $100,000 is rare. In addition, LightStream offers joint applications. However, the high maximum APR may not be worth it if you can qualify for lower rates elsewhere.
Positives
- No fees.
- APR Discounts and Rate Beat Program.
- Same day financing available.
Disadvantages
- High minimum loan amount.
- High maximum APR.
- Excellent credit required.
How to choose between M&T Bank and LightStream
M&T Bank and LightStream are both good options with minimal fees. If you are an existing customer or live in a service state, you can score a lower rate with M&T Bank. But if you’re looking for a larger loan, LightStream may be the better option, although those with excellent credit will get the best rates.
M&T Bank offers competitive rates
M&T Bank should be your first choice if you have good to excellent credit due to its low maximum APR. You may qualify for a slightly lower starting rate with LightStream, but you run the risk of receiving an APR of more than 20 percent. As a result, M&T Bank’s low rates and minimal fees can ultimately cost you less, especially if you don’t need to borrow more than $50,000.
And unlike LightStream, M&T Bank has branches in 14 states and Washington, DC. If you prefer personalized support, this can also give her an edge over LightStream.
LightStream has large loans
LightStream is a top lender and the lack of fees appeals to many people. Borrowers who sign up for automatic payments will receive immediate access to a $0.50 rate discount. M&T Bank, on the other hand, requires you to have a specific checking account to access similar discounts.
Although you need excellent credit to qualify for the lowest rates, Lightstream offers joint applications. This could make it easier to qualify for a better loan if your credit needs to work. LightStream also allows you to receive the money as soon as you are approved, while M&T may take longer.
Lightstream’s loans are also among the largest in the market. It is rare to be able to borrow more than $50,000 on an unsecured loan, which is one of the lender’s best selling points.
Compare lenders before applying
M&T Bank and LightStream are competing lenders in today’s market. Although LightStream has a higher maximum APR, it differentiates itself from the competition by offering same-day turnaround and large loans. M&T Bank has lower rates, but you will have to borrow more to access longer terms.
Because LightStream does not offer pre-qualification and M&T Bank does not clearly know when they will check your credit, it may make more sense to compare rates from other lenders first. This way you know what to expect before applying to either lender and can make an informed decision based on what you are offered.
